Bill on tax measures for energy sustainability in Spain: critical overview

On September 14, 2012, the Spanish Government approved the submission to Parliament of the Bill on tax measures for energy sustainability. The aim of the Bill is to reduce the socalled tariff deficit, which, at the end of 2011, ascended to 24 billion Euros. The Bill will now be processed in the Parliament, for its discussion and approval, with the possibility to introduce changes in its wording. The average processing time is 6 months, although this can be shortened if the processing of the Bill is approved as an urgent action procedure.
The main tax measures contained in the Bill are the following: (i) the creation of a new tax of 6% applicable to the generation of electricity for all technologies, (ii) the establishment of two taxes on nuclear power (one on production and another on the storage of radioactive waste), (iii) a new levy on the use of inland waters for the production of electrical energy, and (iv) the application of a special tax known as «green cent», which hitherto was applied only to liquid fuels used for transportation, to natural gas used for consumption and production of energy, and to fuel oil and gas oil used for the generation of electricity.